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07.01.2021 THE draft Trade and Cooperation Agreement agreed upon by the UK and EU, consists of three main pillars: a free trade agreement, new partnership on security, and a horizontal agreement on governance. e free trade agreement came into ef- fect on 1 January and, with the UK now a non-EU country, new bureaucratic pro- cedures come into effect, particularly with regards to the movement of goods and services. Free Trade Agreement • e agreement covers not just trade in goods and services, but also investment, competition, State aid, tax transparency, air and road transport, energy and sustainability, fisheries, data pro- tection, and social security coor- dination. • It provides for zero tariffs and zero quotas on all goods that comply with the appropriate rules of ori- gin. • Both parties have committed to ensuring a robust level playing field by maintaining high levels of protection in areas such as en- vironmental protection, the fight against climate change and carbon pricing, social and labour rights, tax transparency and State aid, with effective, domestic enforce- ment, a binding dispute settlement mechanism and the possibility for both parties to take remedial measures. • e EU and the UK agreed on a new framework for the joint man- agement of fish stocks in EU and UK waters. e UK will be able to further develop British fishing activities, while the activities and livelihoods of European fishing communities will be safeguarded, and natural resources preserved. • On transport, the agreement pro- vides for continued and sustain- able air, road, rail and maritime connectivity, though market ac- cess falls below what the Single Market offers. It includes provi- sions to ensure that competition between EU and UK operators takes place on a level playing field, so that passenger rights, workers' rights and transport safety are not undermined. • On energy, the agreement pro- vides a new model for trading and interconnectivity, with guarantees for open and fair competition, in- cluding on safety standards for off- shore, and production of renewa- ble energy. • On social security coordination, the agreement aims at ensuring a number of rights of EU citizens and UK nationals. is concerns EU citizens working in, travelling or moving to the UK and to UK nationals working in, travelling or moving to the EU after 1 January 2021. • Finally, the agreement enables the UK's continued participation in a number of flagship EU pro- grammes for the period 2021-2027 (subject to a financial contribution by the UK to the EU budget), such as Horizon Europe. Importing goods from the UK to Malta But what does the agreement mean to people in Malta wanting to import goods from the UK? e biggest change to note is that cus- toms controls will apply when purchas- ing goods from the UK. Once Brexit happened, the UK and EU needed to de- cide the rules for their future trading re- lationship. is was important because the EU is the UK's largest and closest trading partner. Under the deal, no tariffs or quotas will be introduced. But not everything stays the same. Trade in goods will become a lot more burdensome, since the UK has formal- ly left the EU customs union and single market. Although there will not be any tariffs levied or restrictive quotas im- posed, there will be a whole series of new customs and regulatory checks, includ- ing rules of origin and stringent local content requirements. is will add red tape, slowing down the overall process, and just-in-time supply chains will take a while to adjust to the new reality. Customs officers will examine pack- ages arriving from the UK in order to check for prohibited or restricted goods, confirm that the description and value stated on the Customs Declaration is correct and check the Customs Decla- ration to determine if Customs Duty, Excise Duty and/or Import VAT are chargeable. For this reason, as of 1 January, all FROM PAGE 1 "Unfortunately, there has been no clear message as to how the trade deal will affect businesses that im- port goods from the UK," he said. "e little information that has been released thus far has been confusing or incomplete." Xuereb said that, as agreed at yes- terday's meeting, a clarification we- binar is being organised next week for all interested parties. e agreement actually includes various technical documents, with mechanisms and procedures that still need to be developed over the next weeks and months. It is understood that the Customs Department has been working on the free trade agreement document once it was published on Christ- mas Eve in a bid to provide a clear roadmap to businesses and individ- uals importing goods from the UK. e department is still awaiting a response to some of its own que- ries, but its interlocutors them- selves have as yet to fully unravel the technicalities in the deal. "e Chamber is taking a front role to ensure that all necessary information is disseminated to our members and the general public as soon as this is made available," Xuereb said. "We will also be hon- est where necessary and will make it clear when further clarifications may be needed." He said that many Chamber members were left frustrated at the failure of the authorities to clearly explain the changes that came into effect on 1 January. at same confusion was evident among consumers as well, as they took to social media and the intern- er in a bid to determine if they will now incur additional costs if they buy something from the UK. Unfortunately, local online sourc- es seem to be lacking updated in- formation, with even the Customs Department failing to explain ex- actly what changed on 1 January and how these changes will affect businesses and consumers. Attempts by this newspaper to reach the customs department proved futile by the time we went to print. Q&A webinar to be held next week to help unravel Brexit deal ramifications on business Parliamentary secretary Stefan Zrinzo Azzopardi met the Chamber of Commerce yesterday 4 NEWS The UK/EU Free

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